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Blockchain.com receives payment licence from Singapore Central Bank for crypto services

Blockchain.com joins Circle, Independent Reserve, Paxos & others as digital payment token service providers.

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Singapore Central Bank permits Blockchain.com for digital payment token servicesblockchain
Singapore Central Bank permits Blockchain.com for digital payment token services
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New Delhi, UPDATED: Aug 8, 2023 15:18 IST

Highlights

  • Crypto exchange Blockchain.com has been granted a payment licence by the Monetary Authority of Singapore (MAS)
  • Singapore is actively positioning itself as a crypto hub by committing $112 million to support the fintech sector, including those involved in Web3

UK-based crypto platform Blockchain.com has obtained a payment licence from the Monetary Authority of Singapore (MAS), making it the 12th cryptocurrency exchange to receive authorization for crypto dealings in the South-East Asian country. This licence empowers Blockchain.com to offer digital payment token services to institutional clients and accredited investors.

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The approval was granted on 1 August, following the exchange's in-principal approval from MAS in September previous year. Joining the ranks of digital payment token service providers in Singapore, Blockchain.com now stands alongside companies such as Circle, Independent Reserve, Paxos, Revolut, and DBS Vickers.

Aligned with regulatory norms

The recently granted MPI (major payment institution) licence aligns with the regulatory efforts of Singapore to establish itself as a prominent global crypto hub. The country's proactive stance has also been evident through other recent endorsements by MAS, which included giving an in-principal approval for an MPI licence to Ripple, a blockchain-based payments firm, in June.

The local authorities of USD coin issuer Circle also got its MPI licence in June. Notably, this came seven months after obtaining its in-principle approval.

MAS commit substantial funding

Supporting this commitment, MAS pledged a substantial amount of funding $112 million (approximately 150 million Singapore dollars) to boost the financial technology sector.

This initiative extends to entities within the emerging web3 landscape. In July, the regulatory body unveiled new rules mandating crypto service providers to securely hold customer funds within a statutory trust by the year's end.

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Further deliberations are underway to formulate measures that will prevent crypto providers from engaging in lending or staking activities involving retail customer assets.

A comprehensive report released by Galaxy Digital in July indicated that while the majority of crypto startup funding in Q2 2022 remained concentrated in the United States, Singaporean crypto enterprises ranked third following behind the United Kingdom.

In short, Singapore's strategic initiatives, combined with regulatory clarity and financial backing, continue to solidify its reputation as a robust and supportive ecosystem for cryptocurrency and blockchain technology.

Published on: Aug 8, 2023 15:18 ISTPosted by: Minaal, Aug 8, 2023 15:18 IST

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